The state of higher education in Pakistan is plagued by numerous issues, including outdated curricula, faculty quality concerns, and the unchecked proliferation of private institutions operating without accreditation. Among these, the rise of unregulated educational institutes—set up solely for financial gain—has become a particularly alarming issue.
These institutions, unrecognized by the Higher Education Commission (HEC), exploit gaps in oversight to provide substandard education and issue fake degrees. This not only misleads students but also erodes the credibility of the education sector. However, beyond the damage to students’ futures, there is a significant and often-overlooked consequence—major tax evasion, which poses a serious threat to the national exchequer.
A recent report highlights how a concerned citizen moved a reference to the President, urging an investigation by the Federal Tax Ombudsman (FTO) into the financial dealings of universities not accredited by the HEC. The President directed the FTO to conduct a thorough inquiry into potential tax fraud and assess whether the Federal Board of Revenue (FBR) had been negligent in addressing this issue.
Despite more than a year passing since the reference was filed, no report has been submitted, raising concerns over bureaucratic inefficiencies, lack of transparency, and the authorities’ commitment to tackling tax evasion. Even though the FTO had issued notices to key officials in December 2023, including the Secretary of Revenue Division and members of the Inland Revenue Policy, no meaningful action has been taken.
The FBR’s inaction is particularly troubling, given its aggressive approach toward tax-compliant citizens while seemingly ignoring large-scale tax evasion by unregistered institutions. With Pakistan facing severe economic challenges, turning a blind eye to such revenue losses is unacceptable.
The HEC regularly publishes lists of unaccredited institutions, making it relatively easy to verify their tax compliance. Authorities must now take urgent steps to investigate these institutions, determine the scale of revenue loss, and enforce strict financial accountability. Furthermore, federal and provincial higher education bodies should establish a mechanism to ensure that unregistered institutions either comply with regulations within a set deadline or face immediate closure.
Failure to act not only weakens the education system but also results in substantial financial losses for the country. This negligence must end.
